ASSOCHAM welcomes RBI's move to transfer Rs 1.76 lakh crore to government

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Tuesday welcomed the Reserve Bank of India's (RBI) decision to transfer Rs 1.76 lakh crore to the government this fiscal year.

The transfer includes Rs 1.23 lakh of surplus for 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF). The higher surplus is due to the long-term forex swaps and the open market operations conducted by the central bank over the last fiscal year.

ASSOCHAM acting Secretary-General Saurabh Sanyal said the RBI's decision will help the government to take measures for reversing the slowdown in the economy.

"The decision taken on the recommendations of the Bimal Jalan Committee should be welcomed. Looking at global standards, the RBI still has sufficient funds even after giving Rs 1.76 lakh crore," he said in a statement.

"There are many people raising questions where the government will use this money. Finance Minister Nirmala Sitharaman has clearly said that Rs 70,000 crore out of Rs 1,76 lakh crore will go to banks," said Sanyal.